TD Ameritrade's JJ Kinahan On Zynga's Expected 14% Move

Speaking to Benzinga, TD Ameritrade Chief Strategist JJ Kinahan said that investors have to “be careful” when looking at implied volatility on Zynga Inc ZNGA.

Because Zynga is a low-priced $2 stock, the implied volatility appears to be high. Kinahan said the implied volatility in the options market suggested a move of over 14 percent, up or down.

“The options prices are just so cheap and that’s why you have to be very careful about what you glean from an expected move, because as a percentage of the price of the stock” the implied volatility looks “somewhat high,” according to Kinahan.

Heading into its earnings report on Thursday, Zynga Inc fell 12 cents, or 4.09 percent, to $2.69.

Kevin Riley and Brianna Valleskey contributed to this report